NerdWallet’s Best Credit Card Tips for April 2020

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April looks a lot different this year as we adjust to changes caused by the COVID-19 pandemic. For most, Easter services and Passover Seders will be online gatherings. The IRS tax filing (and payment) deadline has been extended until July. Financial Literacy Month retains its place on the calendar, and its lessons may seem more urgent than usual.

As you adapt to new budget priorities, your credit card can help — and not just by offering rewards or discounts, but also time.

Buy time on interest payments

If you’re struggling to pay a credit card bill, you may have options on interest payments.

A 0% intro APR offer: Some issuers may tighten their lending standards during a downturn, but if you can get a 0% introductory offer, it could help you pay down debt or finance needed purchases. Credit cards that offer a 0% intro APR can allow you to keep an emergency fund intact while you pay for certain necessities over time.

When paying off debt is the goal, a balance transfer credit card lets you move high-interest debt to a product with a lower annual percentage rate. The Amex EveryDay® Credit Card is a great choice for balance transfers, but you’ll need good or excellent credit to qualify. It has a $0 annual fee, no balance transfer fees for amounts transferred within a certain period and a 0% introductory APR offer: 0% Intro on Purchases and Balance Transfers for 15 months, and then the ongoing APR of 14.49% – 25.49% Variable APR. Terms apply.

A credit card hardship program:Credit card hardship programs provide assistance to those struggling with financial difficulties resulting from circumstances beyond their control. Given the COVID-19 outbreak, some issuers are offering fee waivers, lower interest payments and other options on a case-by-case basis for customers dealing with hardships. If you plan to pursue this option, be prepared to pick up the phone and wait, potentially for a lengthy period of time.

Get more value on purchases, even as you stay in

It’s likely that your expenses have changed as a result of complying with stay-at-home orders or taking other COVID-19 precautions. If you can afford to pay off your credit card in full every month, it’s still worth accumulating any rewards it may offer. You could even use the cash points to pad your emergency fund.

groceries

Maybe you’re stocking up on groceries for family members who suddenly find themselves at home all day. Or perhaps you’re finalizing last-minute preparations for Easter or Passover. Either way, you can offset some of the costs with a card like the Blue Cash Everyday® Card from American Express, which offers 3% cash back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%); 2% back at U.S. gas stations and U.S. department stores; and 1% back on all other purchases. It has a $0 annual fee. Terms apply.

For Q2 2020, the $0-annual-fee Discover it® Cash Back earns 5% cash back on up to $1,500 in combined purchases at wholesale clubs, gas stations, Uber and Lyft. All other purchases earn 1% cash back. The wholesale category in particular could be beneficial if you’re cooking a lot over the next few months and feeding a large family.

Nerd Tip:

When it comes to wholesale clubs, Costco accepts only Visa. But Discover is accepted at both Sam’s Club and BJs.

Food delivery or takeout

If want to support local restaurants or give yourself a break from the kitchen, you could earn a side of rewards with your next food delivery or takeout order. A foodie-friendly credit card like the $0-annual-fee Capital One® SavorOne® Cash Rewards Credit Card can offer 3% cash back on dining and entertainment, 2% at grocery stores and 1% on all other purchases. If you’re worried about safety, some restaurants and delivery services are offering non-contact deliveries.

Tax prep

The tax deadline has been extended until July 15, so you’ll have more time to prepare. If you’re paying for tax preparation services or software, consider whether you can charge it to a flat-rate credit card. The Citi® Double Cash Card – 18 month BT offer, for instance, earns 2% back on purchases: 1% when you buy and 1% when you pay it off. It has a $0 annual fee.

Avoid using a credit card to pay your tax bill unless the rewards offset the cost of the processing fee.